President William Ruto has unveiled a flexible payment scheme, “Lipa SHA Polepole” (Pay SHA little by little), designed to make healthcare more accessible for the country’s informal sector workers under the Social Health Authority (SHA).
The initiative, announced during the 62nd Madaraka Day celebrations in Homa Bay, aims to address the financial barriers faced by millions in the informal economy, which accounts for over 80% of the nation’s workforce, according to the president.
He said that the Lipa SHA Polepole plan will from now on be allowing them to pay their annual SHA premiums in manageable instalments based on their financial capacity.
”To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as Lipa SHA Polepole,” Ruto said. “This program lets families pay weekly, monthly, or even daily, in a way that suits their means.”
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Developed in collaboration with the Ministry of Health, that of Cooperatives, a number of financial institutions, and mobile network providers via the Hustler Fund, Lipa SHA polepole builds on Kenya’s robust mobile money infrastructure to simplify contributions.
The president revealed that 50,000 Kenyans have already registered with the SHA, with the authority covering treatment for 4.5 million citizens so far.
His announcement came amid scrutiny from the World Bank, which, in a May 27 report, raised concerns about the financial sustainability of the Social Health Insurance Fund (SHIF), the backbone of the Universal Health Coverage (UHC) that should ensure all citizens have access to quality health services without facing financial hardship.
The World Bank recommended exempting low-wage formal sector workers from SHIF contributions and urged the government to subsidise premiums for informal workers and vulnerable groups to guarantee equitable health access.
It warned that the scheme’s reliance on contributions from an economy dominated by informal employment could lead to significant funding shortfalls, projecting annual collections of Ksh67 billion against a target of Ksh157 billion.
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